NEWTOWN, PA — EPAM Systems, Inc. (NYSE: EPAM) reported fourth-quarter 2025 revenue of $1.408 billion, up 12.8% from a year earlier, and full-year revenue of $5.457 billion, up 15.4%, the company announced.
For the quarter ended December 31, GAAP income from operations was $149.3 million, or 10.6% of revenue, compared with $136.5 million a year earlier. Non-GAAP income from operations was $230.0 million, or 16.3% of revenue.
GAAP diluted earnings per share for the quarter rose 10.0% to $1.98 from $1.80. Non-GAAP diluted EPS increased 14.8% to $3.26 from $2.84.
For the full year, GAAP income from operations was $520.0 million, or 9.5% of revenue, down 4.5% from 2024. Non-GAAP income from operations increased 6.7% to $831.5 million, or 15.2% of revenue.
Full-year GAAP diluted EPS declined 14.3% to $6.72 from $7.84 in 2024. Non-GAAP diluted EPS rose 5.9% to $11.50 from $10.86.
Cash provided by operating activities totaled $282.9 million in the fourth quarter, up from $130.3 million a year earlier. For the full year, operating cash flow increased to $654.9 million from $559.2 million in 2024.
During the fourth quarter, EPAM repurchased 1.16 million shares for $223.5 million. For the year, it repurchased 3.54 million shares for $660.6 million. As of December 31, $776.5 million remained under its share repurchase authorization.
Cash, cash equivalents and restricted cash totaled $1.301 billion at year-end, compared with $1.290 billion a year earlier. Total headcount was approximately 62,850, including about 56,600 delivery professionals.
“We are pleased to deliver a strong fourth quarter and full year 2025,” said Balazs Fejes, CEO and president. He cited growth in AI-related revenue and continued investment in technology and talent.
For 2026, EPAM expects full-year revenue growth of 4.5% to 7.5%, or 3% to 6% on an organic constant currency basis. The company projects GAAP operating margin of 10% to 11% and non-GAAP operating margin of 15% to 16%.
EPAM forecasts full-year GAAP diluted EPS of $7.95 to $8.25 and non-GAAP diluted EPS of $12.60 to $12.90, based on an estimated 54.4 million weighted average diluted shares outstanding.
For the first quarter of 2026, EPAM expects revenue between $1.385 billion and $1.400 billion, representing approximately 7.0% year-over-year growth at the midpoint. The company projects GAAP diluted EPS of $1.32 to $1.40 and non-GAAP diluted EPS of $2.70 to $2.78.
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